Today, more people are leaning toward self-employed careers. Being self-employed, or freelancing, allows you to maximize your freedom and lifestyle. However, this career path also comes with its challenges, especially when you’re trying to qualify for a home loan. It’s important to learn what you need to qualify for a self-employed home loan so you can get the best prices and secure a great loan in no time.
Applying for an Employed vs Self-Employed Home Loan
The process of getting a home loan is very similar no matter what kind of career you have. Any applicant needs to establish a budget based on their income and seek a rate guarantee. Each person also needs to fill out a home loan application no matter their job title. The same down payment requirements and good credit history also hold true whether you’re employed by a company or not. However, when it comes to getting a self-employed home loan, this is where the process gets a little tricky.
Providing Proof of Income
It’s very important to provide proof of income when applying for a home loan as this helps establish your debt-to-income ratio. Your lender uses this information to determine if you’ll be able to manage your debt payments including your loan payment. Employed borrowers simply have to submit their W-2 statements. If you’re self-employed, you need to submit more documentation that covers a longer period. This can include tax returns, profit-and-loss statements as well as other supporting information they ask for.
Income Express Loan for Self-Employed Buyers
If you’re self-employed and looking to easily secure a home loan, BrightPath’s Income Express loan may be the right option for you. Our unique mortgage product is designed just for the self-employed borrower. This also includes independent contractors and owners of small unincorporated businesses.
At BrightPath, we know when you’re self-employed you work just as hard for your money so it’s only fair you don’t have to spend so much more just to try and get a home loan. With the Income Express loan, it’s easier for self-employed borrowers to receive a better interest rate. This mortgage requires you to provide either 12 or 24 months of personal or business bank statements to verify your income.
Many lenders are reluctant when it comes to providing a home loan to someone with no solid proof of income. The Income Express loan requires some proof of your financial situation, but it doesn’t require as much as conventional loans. For instance, if you want to borrow between $100,000 and $1.5 million you need to have a credit score of at least 640 and provide 24 months of bank statements. If your credit score is at least 680, you only need to show 12 months of bank statements.
Just because you’re self-employed doesn’t mean you need to miss out on a great deal on a home loan. At BrightPath, we can help you easily secure a self-employed home loan so you can begin planning for the future and find that home you’ve always wanted.
Give us a call today at 888-222-6003 or complete our online form so one of our experienced mortgage specialists can help you secure the right self-employed home loan for you.